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China Shenghuo Reports Full Year 2007 Financial Results
Date:4/1/2008

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"Beginning in late 2007, we implemented an internal control system, which will help us to enhance our operating efficiency and reduce business risks," Mr. Lan said. "The improved controls have tightened our use of operating cash, which we expect to turn positive toward the end of the 2008 fiscal year."

Recent Events

In January 2008, China Shenghuo launched a new television advertising campaign promoting its 12Ways(R) Chinese Herbal Cosmetics on China Central Television ("CCTV"). Management believes this nationwide marketing campaign will effectively increase customers' awareness of Chinese herbal cosmetics.

On January 17, 2008, China Shenghuo received approval from the State Food and Drug Administration ("SFDA") to begin manufacturing its Tian Xin Soft Capsule nutritional supplements. Tian Xin Soft Capsules were developed based on Xuesaitong Soft Capsules, the Company's flagship prescription drug that has been sold for 10 years in China. The main ingredients in Tian Xin Soft Capsules are total saponins, total flavonoids and tea polyphenol. Of those, total saponins and total flavonoids are extracted from Sanchi using modernized techniques. This product is intended to reduce blood fat and improve blood circulation.

"We are very pleased to add Tian Xin Soft Capsules to our Chinese herbal products portfolio," said Mr. Gui Hua Lan, China Shenghuo's Chairman and Chief Executive Officer. "As always, we are committed to leveraging our expertise in the research of Chinese herbs and development of medicinal products for treatment and prevention of hematological diseases. Tian Xin Soft Capsules reflect our continued commitment to bringing the latest treatments to Chinese consumers, while we work to expand our over-the-counter sales through a more diverse revenue stream."

In March 2008, the Company began Phase III clinical trials for its Wei Dingkang Soft Capsules, including 512 patients, to further prove the effectiveness and safe
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SOURCE China Shenghuo Pharmaceutical Holdings, Inc.
Copyright©2008 PR Newswire.
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